Thorsten Frei, Chief of the CDU office, expressed optimism regarding the enduring strength of the governing coalition on the one-year anniversary of the black-red government. While emphasizing that the Union and the SPD must remain united to fulfill their mandate, he stressed that their cooperation must move beyond merely finding the least common denominator. Instead, he argued that policy must be structured to actively utilize the nation’s competitive potential.
Acknowledging that the path forward would be challenging, the CDU politician listed several major reforms already addressed by the coalition, including reducing corporate tax, introducing the “active pension” and abolishing the Bürgergeld benefit.
Looking ahead, Frei pleaded for accelerated action. He stated that the government must push forward swiftly on remaining issues. “We are pushing for a high tempo” he insisted, pointing out that the health reform needed to pass parliament before the summer recess, followed by equally rapid advancements regarding caregiving and pensions, as “we cannot afford to waste time”.
Regarding the recently decided health reform, Frei stated that achieving premium stability is the shared goal. He maintained that the most socially responsible policy is one that does not result in perpetually rising contributions. While acknowledging that Germany operates one of the most expensive healthcare systems globally, he argued that the results are far from exemplary. He stressed that the reform holds all parties accountable-from doctors and the pharmaceutical industry to the beneficiaries-ensuring that expenditures align once again with revenues, calling it a matter of justice.
Frei also criticized recent polls showing the momentum of the radical right (AfD) over the ruling parties, calling the trend alarming. “If radicals are strong, the center must deliver better results. This motivates us” he stated. He underlined the clear mandate for the governing parties: they must boost competitiveness and secure jobs to effectively counter extremism.
On the planned income tax reform, the objective, according to Frei, is to achieve tangible financial relief for a broad range of taxpayers. He pushed back against approaches that treat the reform solely as a revenue-neutral redistribution. Instead, he advocated for a genuine tax reduction aimed at boosting domestic consumer demand. Specifically, he stressed that the reform should provide relief for those in lower and middle income brackets. He argued that current tax structures are overly punitive too early in the earnings cycle, noting that the top tax rate begins at a relatively low threshold of about €70,000, and that the focus should be on the genuinely wealthy, rather than disproportionately burdening the productive middle class.
Addressing the high level of planned public debt, Frei defended the increased borrowing as a necessary measure to secure the country’s safety, especially in the context of needing to credibly deter Russia. He explained that the bulk of the additional debt accumulation is linked to defense investments. While acknowledging a significant increase in spending-moving from a defensive expenditure of €50 billion to nearly €200 billion in a few years-he also cautioned that the government must pursue further budget cuts in the coming weeks.
Finally, Frei strongly rejected the notion of suspending the debt brakes again, as had been discussed by the SPD concerning the Iran crisis. “That is not an option” he asserted. He warned that continuing on this course would mean paying €80 billion in interest alone by 2030. He concluded that excessive debt is irresponsible because “it increasingly narrows the scope for government action”.
